HOUSTON – Michael Caplan, who owns the Cavo Coffee, said he was on the verge of making a very difficult decision earlier this year -- whether to close his business.
One of his biggest concerns was what would happen to the workers he’d be forced to layoff, but a loan from the government’s Paycheck Protection Program provided him enough cash to keep his business alive and his employees paid.
“There’s no doubt the Paycheck Protection Program saved my business,” Caplan said.
Part of the new COVID-19 relief package recently passed by Congress sets aside money for another round of PPP loans, which are expected to roll out in the next few weeks.
The program allows business owners to apply for a loan equal to two-and-a-half times their average monthly payroll costs.
“I think it’s very important to realize that people who’ve already gotten PPP loans, they’ll be able to get another PPP loan,” said Jerry Tarnopol, a small business loan expert at Community Bank of Texas.
Tarnopol said his bank processed 2,002 applications during the first round. That worked out to $295 million.